INFLUENCE OF SUPPLY CHAIN RESILIENCE PRACTICES ON THE PERFORMANCE OF FOOD AND BEVERAGES MANUFACTURING FIRMS IN KENYA

A SURVEY OF NAIROBI CITY COUNTY

Authors

  • Michael Wanjala Muricho Mr.
  • Samuel Muli

DOI:

https://doi.org/10.18533/ijbsr.v11i1.1356

Keywords:

Risk management, Agility, Collaboration, Integration

Abstract

Food and Beverages Manufacturing Firms in Kenya have been exposed to supply chain vulnerability, which has led to uncertainty in matching demand and supply of their products. Supply chain resilience enables Food and Beverages Manufacturing Firms to manage disruptions. As a result, this study focused on examining the influence of supply chain resilience practices on the performance of Food and Beverages Manufacturing Firms in Kenya. The study adopted cross-sectional survey design using both quantitative and qualitative methods. The target population was 102 Food and Beverages Manufacturing Firms in Nairobi City County and the sample size of the study was 50 Firms. Data was collected using questionnaires. Qualitative and quantitative data was coded and entered in SPSS Version 24 for analysis. A pilot study was conducted. Descriptive statistics were generated. Inferential statistics using linear regression and correlation analysis was carried out. The results were presented using tables and graphs. The study findings indicated that, supply chain risk management, agility, supply chain collaboration and supply chain integration significantly influence the performance of Food and Beverages Manufacturing Firms in Kenya. Food and Beverages Manufacturing Firms should embrace supply chain risk management, agility, supply chain collaboration and supply chain integration as supply chain resilience practices.

References

Aggarwal, S., & Srivastava, M. K. (2016). Towards a grounded view of collaboration in Indian agro-food supply chains. British Food Journal, 118(5), 1085-1106.

Ajay, S. S., & Micah, M. B. (2014). Sampling Techniques & Determination of Sample Size in Applied Statistics Research: An Overview. International Journal of Economics, Commerce and Management, 2(2), 1-22.

Arani, W., Mukulu, E., Waiganjo, E., & Musyoka, J. (2015). Enhancers for Building Supply Chain Resilience in Manufacturing Firms in Kenya. The Strategic Journal of Business & Change Management, 2 (71), 709-749.

Azadeh, A., Atrchin, N., Salehi, V., & Shojaei, H. (2013). Modelling and improvement of supply chain with imprecise transportation delays and resilience factors. International Journal of Logistics Research and Applications, 17(4), 269–282.

Barney, J. B. (2001). Is the Resource‐Based "View" a Useful Perspective for Strategic Management Research? Yes. The Academy of Management Review, 26 (1), 41‐56.

Barry, J. (2004). Supply chain risk in an uncertain global supply chain environment. International Journal of Physical Distribution and Logistics Management, 34 (9), 695- 697.

Blome, C., Schoenherr, T., & Rexhausen, D. (2013). Antecedents and enablers of supply chain agility and its effect on performance: A dynamic capabilities perspective. International Journal of Production Research, 51(4), 1295-1318.

Bode, C., Wagner, S. M., Petersen, K. J., & Ellram, L. M. (2011). Understanding responses to supply chain disruptions: insights from information processing and resource dependence perspectives. Academy of Management Journal, 54 (4), 833 - 856.

Bonett, D. G., & Wright, T. A. (2015). Cronbach's alpha reliability: Interval estimation, hypothesis testing, and sample size planning. Journal of Organizational Behavior, 36(1), 3-15.

Brase, C. H., & Brase, C. P. (2016). Understandable Statistics: Concepts and Methods, Enhanced. Boston, MA: Cengage Learning.

Bryman, A. (2012). Social research methods (4th ed.). New York: Oxford University Press.

Cai, S., Goh, M., de Souza, R., & Li, G. (2013). Knowledge sharing in collaborative supply chains: Twin effects of trust and power. International Journal of Production Research, 51(7), 2060-2076.

Cai, S., Jun, M., & Yang, Z. (2010). Implementing supply chain information integration in China: The role of institutional forces and trust. Journal of Operations Management, 28(3), 257-268.

Carter, C. R. (2008). A framework of sustainable supply chain management: moving toward new theory. International journal of physical distribution and logistics management, 38(5), 360-387.

Cheruiyot, K. (2013). Impact of integrated supply chain on performance at Kenya Tea Development Agency. International Journal of Social Sciences and Entrepreneurship, 1(5), 194-203.

Child, J. (1972). Organizational structure, environment and performance: the role of strategic choice. Sociology, 6(1), 1-22.

Christopher, M., & Holweg, M. (2011). Supply Chain 2.0: Man¬aging supply chains in the era of turbulence. International Journal of Physical Distribution & Logistics Management, 41(1), 63 -82.

Clulow, V., Barry, C., & Gerstman, J. (2007). The resource-based view and value: The customer-based view of the firm. Journal of European Industrial Training, 31(1), 19-35.

Cohen, L., Manion, L., & Morrison, K. (2013). Research methods in education. Abingdon: Routledge.

Coombs, W. (1998). An analytic framework for crisis situations: Better responses from a better understanding of the situation. Journal of Public Relations Research, 10(3) 177-191.

Cooper, D. R., & Schindler, P. S. (2011). Business Research Methods. (11th ed.). New York: McGraw-Hill.

De Rond, M., & Thietart, R. A. (2007).Choice, chance, and inevitability in strategy. Strategic Management Journal, 28(5), 535-551.

DeGroote, S. E., & Marx, T. G. (2013). The impact of IT on supply chain agility and firm performance: An empirical investigation. International Journal of Information Management, 33(6), 909-916.

Drost, E.A. (2011). Validity and Reliability in Social Science Research. Education Research and Perspectives, 38(1), 105-123.

Efendioglu, A. M., & Karabulut, A. T. (2010). Impact of Strategic Planning on Financial Performance of Companies in Turkey. International Journal of Business and Management, 5(4), 3 – 12.

Farhad P., Byrne P.J., Mohammad A. S., & Cathal, H. (2018). Supply chain collaboration and firm’s performance: The critical role of information sharing and trust. Journal of Enterprise Information Management, 31(3), 358-379.

Frank, R. (1988). Passion within reason. New York: W. W NORTON.

Freeman, R. E. (1999). Divergent stakeholder theory. Academy of Management Review, 24(2), 233-236.

Freeman, R.E (1984). Strategic Management: A stakeholder Approach. Boston, MA: Pitman Books.

Garg, G., & Kothari, C. R. (2014). Research Methodology. Methods and Techniques. New Delhi: New Age International Publishers.

Georgise, F.B., Thoben, K.D., & Seifert M. (2012). Adapting the SCOR Model to Suit the Different Scenarios: A Literature Review & Research Agenda. International Journal of Business and Management, 7(6), 1-17.

Ghatari, A. R., Mehralian, G., Zarenezhad, F., & Rasekh, H. R. (2013). Developing a model for agile supply: An empirical study from Iranian pharmaceutical supply chain. Iranian Journal of Pharmaceutical Research, 2, pp. 193-205.

Gibilisco, S. (2011). Statistics demystified. (2nd.ed). New York: McGraw-Hill.

Giunipero, H. L., Nils-Ole H., & Edda F. E. (2015). Research on the phenomenon of supply chain resilience: A systematic review and paths for further investigation. International Journal of Physical Distribution and Logistics Management, 45(1/2), 90-117.

Gligor, D. M., Esmark, C. L., & Holcomb, M. C. (2015). Performance outcomes of supply chain agility: When should you be agile? Journal of Operations Management, 33(34), 71-82.

Gligor, D., & Holcomb, M. (2012). Understanding the role of logistics capabilities in achieving supply chain agility: A systematic literature review. Supply Chain Management: An International Journal, 17(4), 438-453.

Grant, R. M. (1991). The resource‐based theory of competitive advantage: implications for strategy formulation. California Management Review, 33(3), 114‐135.

Gunasekaran, A., Lai, K., & Cheng, T. (2008). Responsive supply chain: A competitive strategy in a networked economy. Omega, 36(4), 549-564.

Hasan, M., Murat, Ç., & Mustafa E. C. (2018). The effect of Supply Chain Agility on Firm Performance. Journal of International Trade, Logistics and Law, 4(2), 25-34.

Hinterhuber, A. (2013). Can competitive advantage be predicted? Towards a predictive definition of competitive advantage in the resource-based view of the firm. Management Decision, 51(4), 795-812.

Hutchinson, K., Donnell, L.V., Gilmore, A. and Reid, A. (2015). Loyalty card adoption in SME retailers: The impact upon marketing management. European Journal of Marketing, 49 (3/4), 467-490.

Imeokparia, L. (2015). Working Capital Management and Performance of Food and Beverage Industry in Nigeria. Research Journal of Finance and Accounting, 6 (4), 196 – 202.

Jones T. (1995). Instrumental Stakeholder Theory: A Synthesis of Ethics and Economics”, Academy of Management Review, 20 (2), 404-437.

Julie .P. (2011). SPSS Survival Manual: A step by step guide to data analysis using SPSS for Windows. Australia: Allen & Unwin.

Jüttner, U., & Maklan, S. (2011). Supply chain resilience in the global financial crisis: an empirical study. Supply Chain Management: An International Journal, 16(4), 246-259.

Kache, F., & Seuring, S. (2014). Linking collaboration and integration to risk and performance in supply chains via a review of literature reviews. Supply Chain Management: An International Journal, 19(5/6), 664-682.

Ken, B. (2010). Business Statistics For Contemporary Decision Making (6th ed.). USA: John Wiley & Sons, Inc.

Kenneth, S. & Bordens, B. (2010). Research design and methods: a process approach (8th ed.) UK: McGraw-Hill.

Kenya Association Manufacturers, (2015). Kenya manufacturers and Exporters Directory. (11th ed.). Nairobi: Kenya Association of Manufacturers.

Kenya National Bureau of Statistics (2016). Economic Survey. Nairobi: Government Printer.

Kenya National Bureau of Statistics (2018). Economic Survey. Nairobi: Government Printer.

Ketchen Jr., G., & Hult, T.M. (2007). Bridging organization theory and supply chain management: The case of best value supply chains. Journal of Operations Management, 25(2), 573-580.

Luper, I., & Kwanum, I. M. (2012). Capital structure and firm performance: Evidence from manufacturing companies in Nigeria. Research Journal of Finance and Accounting, 3 (5), 151-158.

Lysons, K., & Farrington, B. (2006). Purchasing and Supply Chain Management. Pearson Education, London.

Maninder, S. S. (2016). Methodology Series Module 3: Cross-sectional Studies, Indian Journal of Dermatology, 61(3), 261–264.

Margaret E. A. (2017). The March of Scientific Knowledge in Social Work. Advances in Social Work, Fall 2017, 18(2), 415 – 436.

McDowell, W. C., Harris, M. L., & Gibson, S. G. (2013). The influence of communication and information quality on trust in the small business supply chain. Journal of Applied Management and Entrepreneurship, 18(2), 21-38.

McNichols, T., & Brennan, L. (2006). Partner Suitability for Collaborative Supply Networks. Int. J. Networking and Virtual Organizations, 3(2), 220–237.

Miguel, P. L. S., & Brito, L. A. L. (2011). Supply chain management measurement and its influence on operational performance. Journal of Operations and Supply Chain Management, 4 (2), 56 – 70.

Mohamed, K. S., & Omwenga, J. (2015). Supply chain risks mitigation strategies adopted by manufacturing firms in Kenya: A case of Coca Cola Company (K). International Academic Journal of Procurement and Supply Chain Management, 1 (4), 45-65.

Mohammaddust, F., Rezapour, S., Farahani, R. Z., Mofidfar, M., & Hill, A. (2017). Developing lean and responsive supply chains: A robust model for alternative risk mitigation strategies in supply chain designs. International Journal of Production Economics, 183, (1), 632-653.

Msimangira, K., & Venkatraman, S. (2014). Supply Chain Management Integration: Critical problems and solutions. Operations and supply chain management, 7(1), 23-31.

Mugenda, O. M., & Mugenda, A. G. (2012). Research Methods: Quantitative and Qualitative Approaches. Nairobi: Acts Press.

Mugenda, O. M., & Mugenda, A. G. (2013). Qualitative research methods: Introduction. Nairobi: Africa Center for Technology Studies (Acts) Press.

Nguyen, P. V., & Nguyen, L. T. (2017). Performance measurement of supply chain integration in Manufacturing firms’ of Southeast Vietnam. European Journal of Economic and Management, 6(2), 23-32.

Ongisa, F. N. (2016). Influence of Supply Chain Risk Control Strategies on Performance of Food and Beverage Manufacturing Firms in Kenya. Journal of Research in Business and Management, 4(3), 01 - 09.

Ongisa, F. N., Rotich, G., & Karanja, G. N. (2016). Influence of Supply Base Rationalisation Strategies on Performance of Food and Beverage Manufacturing Firms in Kenya. (IOSR) Journal of Business and Management, 18(5), 09 – 18.

Pereira, C., Christopher, M., & Da Silva, L. (2014). Achieving Supply Chain Resilience: The role of procurement. An International Journal of Supply Chain Management, 19 (5/6), 626–642.

Pettit, T. J., Croxton, K. L., & Fiksel, J. (2013). Ensuring supply chain resilience: Development and Implementation of an Assessment Tool. Journal of Business Logistics, 34(1), 46-76.

Pettit, T. J., Fiksel, J., & Croxton, K. L. (2010). Ensuring Supply Chain Resilience: Development of a Conceptual Framework. Journal of Business Logistics, 31(1), 1- 21.

Pournader, M., Rotaru, K., Kach, A. P., Hossein, S., & Hajiagha, R. (2016). An analytical model for system-wide and tier-specific assessment of resilience to supply chain risks. Supply Chain Management: An International Journal, 21 (5), 589 - 609.

Rafisah, M. R., Intan, M. S., & Nadzri, A. G. (2015). Overcoming barriers of food supply chain in Malaysia by Japanese food companies. Research Journal of Business and Management, 2(3), 380 – 400.

Rubin, A. & Babbie, E.R. (2010) Research Methods for Social Work, Brooks Cole: Belmont.

Scholten, K., & Schilder, S. (2015). The role of collaboration in supply chain resilience. Supply Chain Management, 20(4), 471-484.

Scholten, K., Sharkey, S., & Fynes, B. (2014). Mitigation Processes – Antecedents for Building Supply Chain Resilience. Supply Chain Management: An International Journal, 19(2), 211–228.

Seuring, S. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of cleaner production, 16(15), 1699-1710.

Skouloudis, A., Avlonitis, G.J., Malesios, C., Evangelinos, K. (2015). Priorities and perceptions of corporate social responsibility: Insights from the perspective of Greek business professionals. Manag. Decis, 53(2), 375–401.

Soosay, C. A., & Hyland, P. (2015). A decade of supply chain collaboration and directions for future research. Supply Chain Management: An International Journal, 20(6), 613-630.

Terho, H., Haas, A., & Eggert, A. (2012). It’s almost like taking the sales out of selling’ – Towards a conceptualization of value-based selling in business markets. Industrial Marketing Management, 41(1), 174–185.

Viechtbauer, W., Smits, L., Kotz, D., Bude, L., Spigt, M., Serroyen, J., & Crutzen, R. (2015). A simple formula for the calculation of sample size in pilot studies. Journal of clinical epidemiology, 68(11), 1375-1379.

Vikas, K., Luciano, B., & Roger, M. (2011). The Impact of Operations Performance on Customer Loyalty. Service Science, 3(2), 158-171.

Walter, A. B., & Iruka, C. H. (2015). Investigating the Relationship between Customer Involvement Management and Marketing Performance in the Manufacturing Industry. International Journal of Research in Business Studies and Management, 2 (9), 22-34.

Wanjala, Y. M., Iravo, A. M., Odhiambo, R., & Shalle, I. N. (2017). Influence of Monitoring Tools on Project Performance in Kenyan State Corporations. European Scientific Journal, 13(19), 1857 – 7881.

Wellenbrock, M. (2013). Theoretical Basis of Supply Management the Network Theory in Supply Management. University of Twente, Netherlands.

Wernerfelt, B. (1984). A Resource-Based View of the Firm. Strategic Management Journal, 5(2), 171-180.

Whittington, R. (1989). Corporate strategies in recession and recovery: Social structure and strategic choice. London: Unwin Hyman.

Wieland, A. & Wallenburg, C.M. (2012). Dealing with supply chain risks: Linking risk management practices and strategies to performance. International Journal of Physical Distribution and Logistics Management, 42(10), 887-905.

Wright, R. (2016). Supply chain integration and performance: Evidence from Romania. Journal of economics and business, 19(1), 11-30.

Wube, A. D., Frank, E., & Birhanu, B. A. (2016). Supply Chain Integration for Improving Performance on Manufacturing Industries: J Global Engineering. Global Journal of Researches in Engineering, 16(4), 21-34.

Yamane, T. (1967). Statistics: An Introductory Analysis (2nd ed.). New York: Harper and Row.

Zhou, W., & Piramuthu, S. (2013). Technology regulation policy for business ethics: An example of RFID in supply chain management. Journal of Business Ethics, 116(2), 327-340.

Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2012). Business Research Methods (9th ed.). New York: The Free Press.

Published

2021-03-23

Issue

Section

Research paper